Value &Pricing Solutions

for Travel Services

How doclients chooseyour Companyin a world of 1 000 000 Destinations ?

Price/

Quality?

Image / Advertising ?

Visibility / Convenience ?

FUTURELAB

Word of Mouth /Recommendations ?

Price Promotions

Value Proposition

What drives Consumers’ Value Perception?

What are your product ratingsvs competition?

Perceived Value

Product Quality

Brand/Image

Service /Experience

Convenience / Availability

Value /PriceFind the right Balance

Second phase of Marketing:

Then we started talking to someone called ‘Consumer’

Who uses your services ?

What ValueProposition?

Travel 2.0

Travel Agent 2.0

• A joint study by the University of Augsburg, the consultancy firmConvois and Google Germany does not give a particularly glowingreport of holidaymakers who book over the Web – at least wheretheir decisiveness and brand loyalty are concerned.

• Customers are extremely hesitant and choosy, and are notparticularly concerned about known brands.

• Customers visit up to seven different sites before eventuallychoosing a particular offer.

• Only 19 per cent of those who make a booking are regular customersof a particular provider.

As Jan Oetjen, the head of the research project atAugsburg University, says: “The average internetbooker has the patience a truffle pig, but theloyalty of a street dog.”

• A joint study by the University of Augsburg, the consultancy firmConvois and Google Germany does not give a particularly glowingreport of holidaymakers who book over the Web – at least wheretheir decisiveness and brand loyalty are concerned.

• Customers are extremely hesitant and choosy, and are notparticularly concerned about known brands.

• Customers visit up to seven different sites before eventuallychoosing a particular offer.

• Only 19 per cent of those who make a booking are regular customersof a particular provider.

As Jan Oetjen, the head of the research project atAugsburg University, says: “The average internetbooker has the patience a truffle pig, but theloyalty of a street dog.”

The Real e-consumer in Travel

Value & Pricing strategy

Results

� Sales growth

� Segment share

� Profitability / ROI

Actions

Pricing & Value levers

� Value Proposition

� Marketing Spend

� Price

� Product quality

� Promotion

Consumer

Attitudes / Calue Drivers

Consumption funnel

%

% % %

userepeat

awarenesstrial

What are

the

Value Drivers

for

your

target segments ?

Experience / Adventure ?

Nature/ Taking a Break ?

Hotel / Accomodations ?

Brand?

You are not in the Tourism business servingpeople, but in the People business, providingTravel(to paraphrase Howard Schultz, Starbucks)

Commodities Products Services Experiences Culture

$.10 $.25 $1.00 $4.50?

$???

Targeted Value Propositions

Take a closer look…

Consumer Research

Experience & Brand Mapping

Region / Area

Segmentation

Experience / Service

Pri

ce

Illustrative: source: Amadeus Segmentation

Segment of One?

Experience / Brand Advocacy

FarnienteIn Tuscany ?

Trekking in Thailand ?

Atlantic Travel sold 449New Orleans Mardis Gras Travel Packages at€4400

Pricing research showedthat volume would not drop if they were to charge €4995 per trip

Indeed, it did not and that595€ difference translatedinto€267 155 in extra profit

43,900

9.30

9.95

Bottom Line Impact

Pricing & Value ConsultancyCreated in 1993Present in 10 countriesResearch, Strategy, ImplementationThought leader + state of the art tools

clients include

Pricing Solutions – Range of services

Research

• Client/Consumer Value Drivers research• Price change impact research• Transactional analysis/ Modélling• Client Value & Satisfaction studies• Product potential & ‘Willingness to pay’• Client/Consumer segmentations• …..

Advisory • Value Based Pricing

• Pricing Strategies & Tactics• Competitive Pricing / Price Wars• Implementing Price Increases• Channel Pricing• New Product Launch• ….

Process

• Development / Reinforcement of Pricing Capabilities

• Redéployment of Pricing Processes• Management & optimization of ‘client conditions

’• Multi-Channel Pricing / Pricing Corridors• Change Management• Value Propositions / Design to Price• Pricing Software implementation• …..

Support

• Sales Force Training / Motivation • Support/ Training of Pricing / Marketing teams• Decision Suppoirt Systems• Deplyment & management of ‘Test Platforms’• Product/Service Full Cost Analysis• Pricing Process deployment• Pricing & Competitive Intelligence &

Benchmarking• …..

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